• Onomatopoeia@lemmy.cafe
    link
    fedilink
    English
    arrow-up
    1
    arrow-down
    1
    ·
    10 days ago

    Sure. But they sell a huge amount to the US. And this is about a trade deficit between US and China. This one hurt the US like it will China - US can buy similar goods elsewhere, while the rest of the world can’t compensate for the loss of sales to the US - they’re already purchasing what they need.

    I mean this is basic economics, and you all act like China can magically come up with new customers.

    The current effective tariff on Chinese goods is 104%, and that doesn’t include the tariffs on countries through which China ships. Those tariffs put Xi in a no-win situation. He can’t even afford the 34% Tariff for any length of time, because of the massive overproduction going on. They have manufacturing going to meet demand 6 months from now, to compensate for distribution time. All that stuff will now sit in China, where they don’t have storage capacity for it.